I once got an inheritance and used a good chunk of it to extinguish our fairly large credit card debt. Within a year, the wife was at it again and ran up an even bigger credit card balance, then filed for divorce. Now if I had instead put that inheritance in an investment in my name alone (income producing property, dividend yielding stock, T bills, etc) it would have been legally untouchable by her and would likely have doubled in value by now.

I recommend NOT commingling it and instead letting it help pay for the kids’ college education through it’s earnings. But preserve the principal if at all possible. This is what I feel best serves the memory of the decedent: for their financial generosity to have the longest, most far-reaching impact on the lives of their family.

I think the issue of her late mother “disapproving” is probably related to the mother probably not knowing about the debt when she was alive and the woman’s sense of guilt over it.

I would also add that there is prpbably a fear that the removal of the debt was too easy and the lack of pain might lead her and her husband right back into debt.

Alyzabeth’s Mommy for Six Months!